How To Find The Next 1000x Altcoins To Invest In: Essential Things To Know

Last Updated September 20th 2021

9 Min Read

Investing in altcoins is not an easy decision if you want to make enormous gains by seeing huge returns on your investments. Altcoins have risen in popularity in 2021 thanks to the crypto boom led by the parent digital token Bitcoin.

The milestones attained by BTC such as crossing $40,000, $50,000, and $60,000 in the first four (4) months of 2021 have led to a spike in the price of alternate coins (altcoins).

Most of these coins have taken advantage of the rise in BTCs price to also reach individual milestones. Popular among them are Ether (ETH), Binance Coin (BNB), Cardano (ADA), and Dogecoin (DOGE).

This has led to the infiltration of the cryptocurrency market by developers who have seen an opportunity to cash in on this new form of digital investing.

As a result, as a starter or beginner, you should know that most of the altcoins that have created this saturated cryptocurrency market are scams.

Most of the tokens are backed by shadow financial technology organizations that are defrauding unsuspecting people of their hard-earned money. Therefore, if you want to invest in altcoins, you need to be extremely careful about the kind of exchanges you choose as well as the kind of people you take investing advice from.

Finding an altcoin with 1000x potential is like looking for a needle in a haystack. Since Bitcoin is the only major coin, there are more than 11,000 altcoins in the market.

With several reports of gains being made across social media platforms, it is understandable that you may want to throw your money behind a particular coin as soon as possible. But be patient, with the right guidance, you will be able to perform extensive analysis on a coin, and as well know where and how to look for the right coin to diversify your portfolio of investments.

Do you know that several coins that showed promise earlier on have disappeared into thin air? This has led several investors to lose hundreds, thousands, and millions of dollars in the process.

However, the meteoric rise of altcoins such as meme-inspired digital currencies such as Dogecoin (DOGE) and Shiba Inu (SHIB), as well as SafeMoon have provided evidence that investors who have time in the market rather than timing the market can make good money.

The most important thing is to identify altcoins with a huge potential early and invest an amount of money you can afford to lose.

Although there have been several reports on people making at least 500% returns within the first six months of 2021 and others losing millions of dollars, it is still possible to find altcoins that can bring you 1000x returns on your investment.

Always remember that because of the highly volatile nature of the cryptocurrency market, such a personal milestone can only be achieved with a fundamental and technical analysis of a particular altcoin.

Check Out: Altcoin Investing: What Investors Need To Know About Altcoins

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

How To Avoid Rug Pulls And Minimize Risks

When investing in altcoins, one of the most essential things to identify in trying to find the right coin is rug pull.

RugPull is a new term associated with the cryptocurrency market. RugPull is a type of scam where developers abandon a project and take off with investors’ money.

With the experience of our experts in analyzing various crypto projects, we can tell the signs of a rug pull.

Rug Pulls normally happen in the decentralized finance (DeFi) space. The category of DeFi where Rug Pulls are prevalent is unregulated decentralized exchanges such as Binance’s PancakeSwap and Ethereum’s Uniswap.

To access the Ethereum Network and Binance Smart Chain, you must use the various native assets that govern these blockchain technologies.

These native assets are Ether (ETH) and Binance Coin (BNB).

Once you as an unsuspecting investor swap Ether or Binance Coin for the listed token of your interest, the creators act fast and withdraw all the funds from the liquidity pool.

Once this happens, the price of your coin of interest experiences sharp declines in price and falls into extinction or irrecoverable zones ($0.0000001, $0.00000001, etc.).

What most scammers do is create fake social media accounts on Telegram, Facebook, and Twitter to provide credibility. After that, they hype the project by backing the coin through liquidity injections that boost the daily trading volume of the coin to cultivate investor interest.

Once they reach their target, gains are locked in, and funds are withdrawn leaving investors with huge losses. Take note.

This is the primary reason why Trading Education wants you to follow steps to the latter so that you wouldn’t fall victim to such scams.

Study the Initial Token Distribution

When any crypto project pops up, one of the most important steps taken by developers which are keenly monitored by experienced traders and investors is token distribution.

You must know that developers of a crypto project have the power to distribute tokens in a way they deem fit.

As a result, some developers normally take advantage of the lack of knowledge on the part of numerous unsophisticated investors and maintain a huge chunk of the tokens.

Others take the step of awarding a celebrity a significant number of the coins to spark up investor interest. This can be likened to the case of Shiba Inu (SHIB) that soared the popularity of the coin.

When you see such a pattern in the initial stages of a crypto project, you must be extremely vigilant. Since most of these celebrities did not have to go through the hustle and tussle of buying the coins, they can dump their holdings anytime.

Trading Education would recommend that you patronize altcoins that have at least 90% of its total and maximum supply on popular decentralized exchanges (Uniswap and PancakeSwap) for anyone and everyone to buy.

Find Out the Persons Who Own the Liquidity Pool

You must ask the question, who owns the liquidity pool of altcoin A, or B? For most of the scam altcoins that are solely designed to defraud investors, you normally see the entire liquidity pool is owned by the developers of the same project.

What normally follows most of these projects is the removal of the whole pool including the Binance Coins (BNBs) and Ether (ETH) that were inside the pool. This is one of the perfect setups scammers have employed for Rug Pull.

Kindly note that you may not be an expert on blockchain technology or decentralized finance, but you should always watch out for the majority of a coin’s liquidity pool being held by a burn address designated with something like “oxoooo……”

What’s more, as an investor, you should also be wary of the type of blockchain technology and algorithm being employed by developers of your preferred altcoin.

This is because different systems come with different scaling (speed of processing transactions).

This has a direct correlation to the transaction fees associated with coins. As a result, if an altcoin has a relatively higher transaction fee rate, it may be a ploy to discourage you from selling the coins in anticipation of a relatively higher price in the short term.

Since selling at a particular price at a particular cost may not meet your profit expectations, you will wait and wait and one day, the valuation of your coin will reach $0.00000.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

The Search Or Meme Coin with 1000X Potential

It should be your quest to maximize profits and minimize risks in your journey towards investing in altcoins. To achieve this goal, there should be a reduction of risks through the elimination of Rug Pulls. After that, you can identify the coins that are backed by innovative products that can add value to the decentralized finance space. These are the essential factors you must consider before investing in altcoins.

The mission of the Development Team

The first thing you should get your hands on is the whitepaper behind the crypto project.

Whitepapers are created by the founders and developers of crypto to help sell the coin to the general public. For legitimacy and authenticity, developers use white papers to provide quotes, facts, statistics, and diagrams.

Although they are normally written for technically-focused buyers, you should read them to the end to get to know the mission of the team.

If the project has a long-term outlook and focuses on including a Community, that’s a positive sign to note down.

For what’s worth, do your best to stay away from projects whose representatives are only interested in pressuring people to buy.

This is a sign of a pump and dump scheme where developers lock in gains and take off with investor funds once the price shoots up substantially.

Is the Altcoin a Friendly Token?

Inasmuch as people will like to join a buzz of a particular altcoin based on strong fundamentals, several coins have been purchased by millions based on how friendly the token is.

Dogecoin (DOGE) and Shiba Inu Coins (SHIB) have been patronized because of the love people have for Shiba Inu dogs. Aside from that, they piqued people's interest because of their use to support humanitarian causes on the globe. Once an altcoin has a social cause to it, you should take a stake in it because of its potential in such a saturated market.

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Some Promising Altcoins To Consider

As per the analysis provided, here are a few altcoins with good potential you can consider investing in.

Cardano (ADA): The peer-reviewed project will become fully functional by the end of 2021. The possibilities of the Cardano project cuts across the centralized and decentralized world. Its coin has a huge potential in the long term.

Ether (ETH): Continues to dominate the decentralized finance world. Currently a deflationary coin as a result of its latest upgrade, the value of ETH will only get better since it's needed to facilitate all the transactions on its blockchain.

Shiba Inu (SHIB): Trading on the low side, SHIBA is the only meme-inspired crypto project which has launched a decentralized exchange, ShibaSwap to extend the usage of its native asset. Trading on the low side, you can buy more SHIBs at a relatively lower price and rake in huge returns in the long term.

Dogecoin (DOGE): Already has a fanbase that continues to sign numerous petitions for the upgrade of the network. Could trigger smart contracts someday and compete with the giants in the DeFi space for a fair share of the market. Could reach new milestones in the future.

Whatever happens, an altcoin with 1000x wouldn’t be easy to find. With that said, finding ample time to study the whole project, exchange listings, daily trading volume, and the number of transactions the coin continues to be involved in weekly could see you settle on the right coin.

Always remember that investing in cryptocurrencies is highly risky, therefore invest in altcoins an amount of money you can write off as bad debts.